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Chapter 8 Product, Services, and Branding Strategies: Building Customer Value 1) We define a as anything that can be offered to a market for attention, acquisition, use, or consumption and that might satisfy a want or need A) private brand B) service variability C) service D) product E) service encounter Answer: D Diff: 1 Page Ref: 224 AACSB: Communication Skill: Concept Objective: 8-1 2) are a form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything A) Line extensions B) Services C) Brands D) Consumer products E) Supplements Answer: B Diff: 1 Page Ref: 224 AACSB: Communication Skill: Concept Objective: 8-1 3) A product is a key element in the At one extreme, it may consist of pure tangible goods or at the other extreme, pure services A) market offering B) brand equity C) brand extension D) co-branding E) value chain Answer: A Diff: 1 Page Ref: 224 AACSB: Communication Skill: Concept Objective: 8-1 49 Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 4) To differentiate themselves, many companies are going beyond products and services, they are developing and delivering customer A) quality B) experiences C) brands D) product lines E) events Answer: B Diff: 2 Page Ref: 224 AACSB: Communication Skill: Concept Objective: 8-1 5) Product planners need to consider products and services on three levels Each level adds more customer value The most basic level is the , which addresses the question, "What is the buyer really buying?" A) actual product B) augmented product C) core customer value D) co-branding E) exchange Answer: C Diff: 2 Page Ref: 225 AACSB: Communication Skill: Concept Objective: 8-1 6) The third level of a product that product planners must consider is a(n) around the core benefit and actual product that offers additional consumer services and benefits A) brand equity B) augmented product C) brand extension D) industrial product E) image Answer: B Diff: 2 Page Ref: 225 AACSB: Communication Skill: Concept Objective: 8-1 50 Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 7) Product planners must design the actual product and find ways to it in order to create the bundle of benefits that will provide the most satisfying customer experience A) promote B) package C) brand D) augment E) present Answer: D Diff: 3 Page Ref: 225 AACSB: Communication Skill: Concept Objective: 8-1 8) Products and services fall into two broad classifications based on the types of consumers that use them Which is one of these broad classes? A) industrial products B) specialty products C) supplies and services D) materials and parts E) convenience products Answer: A Diff: 2 Page Ref: 226 Skill: Concept Objective: 8-1 9) are products and services bought by final consumers for personal consumption These include convenience products, shopping products, specialty products, and unsought products A) Services B) Consumer products C) Line extensions D) Industrial products E) Straight extensions Answer: B Diff: 1 Page Ref: 226 Skill: Concept Objective: 8-1 51 Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 10) are less frequently purchased consumer products and services that customers compare carefully on suitability, quality, price, and style Consumers spend much time and effort in gathering information and making comparisons about these products A) Shopping products B) Convenience products C) Unsought products D) Industrial products E) Line extensions Answer: A Diff: 2 Page Ref: 226 Skill: Concept Objective: 8-1 11) are consumer products and services with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort A) Shopping products B) Unsought products C) Specialty products D) Industrial products E) Line extensions Answer: C Diff: 1 Page Ref: 226 Skill: Concept Objective: 8-1 12) are consumer products that the consumer either does not know about or knows about but does not normally think about buying These products require a lot of advertising, personal selling, and other marketing efforts A) Specialty products B) Line extensions C) Unsought products D) Shopping products E) Staples Answer: C Diff: 1 Page Ref: 226 Skill: Concept Objective: 8-1 52 Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 13) are those products purchased for further processing or for use in conducting a business A) Unsought products B) Specialty products C) Shopping products D) Industrial products E) Accessories Answer: D Diff: 1 Page Ref: 227 Skill: Concept Objective: 8-1 14) Most manufactured materials and parts are sold directly to Price and service are the major marketing factors; branding and advertising tend to be less important A) consumers B) industrial users C) brand extensions D) co-branders E) wholesalers Answer: B Diff: 2 Page Ref: 227 Skill: Concept Objective: 8-1 15) are industrial products that aid in the buyer's production or operations, including installations and accessory equipment A) Materials B) Parts C) Capital items D) Specialty items E) Supplies Answer: C Diff: 2 Page Ref: 227 Skill: Concept Objective: 8-1 53 Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 16) consists of activities undertaken to create, maintain, or change the attitudes and behavior of target consumers toward an organization A) Person marketing B) Organization marketing C) Internal marketing D) Service variability E) Intelligence marketing Answer: B Diff: 2 Page Ref: 228 AACSB: Communication Skill: Concept Objective: 8-1 17) consists of activities undertaken to create, maintain, or change attitudes toward particular people A) Corporate image marketing B) Person marketing C) Social marketing D) Organization marketing E) Intermarket marketing Answer: B Diff: 1 Page Ref: 228 AACSB: Communication Skill: Concept Objective: 8-1 18) involves activities undertaken to create, maintain, or change attitudes toward particular cities, states, and regions A) Idea marketing B) Place marketing C) Organization marketing D) Social marketing E) Interactive marketing Answer: B Diff: 1 Page Ref: 228 AACSB: Communication Skill: Concept Objective: 8-1 54 Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 19) is defined as the use of commercial marketing concepts and tools in programs designed to influence individuals' behavior to improve their well being and that of society A) Unsought product marketing B) Internal marketing C) Social marketing D) Product line E) Interactive marketing Answer: C Diff: 1 Page Ref: 229 AACSB: Ethical Reasoning Skill: Concept Objective: 8-1 20) Public health campaigns to reduce alcoholism, drug abuse, smoking, and obesity are all examples of A) specialty products B) social marketing C) shopping products D) consumer products E) responsibility marketing Answer: B Diff: 2 Page Ref: 229 AACSB: Ethical Reasoning Skill: Concept Objective: 8-1 21) Developing a product or service involves defining the benefits that it will offer These benefits are communicated and delivered by such as quality, features, and style and design A) private brands B) product attributes C) consumer products D) product mixes E) marketing tools Answer: B Diff: 3 Page Ref: 229 AACSB: Communication Skill: Concept Objective: 8-2 55 Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 22) is one of the marketer's major positioning tools because it has a direct impact on product or service performance; it is therefore closely linked to customer value and satisfaction A) Packaging B) Product quality C) Total quality management D) Specialty product marketing E) Positioning Answer: B Diff: 2 Page Ref: 229 AACSB: Communication Skill: Concept Objective: 8-2 23) is an approach in which all the company's people are involved in constantly improving the products, services, and business processes A) Product quality B) Brand equity C) Total quality management D) Specialty product marketing E) Positioning Answer: C Diff: 2 Page Ref: 230 Skill: Concept Objective: 8-2 24) What are the two dimensions of product quality? A) consistency and level B) performance and resistance C) design and innovation D) conformance and style E) feature and design Answer: A Diff: 2 Page Ref: 230 Skill: Concept Objective: 8-2 56 Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 25) Which of the following types of quality refers to freedom from defects and consistency in delivering a targeted level of performance? A) private brand B) product C) total quality management D) conformance E) adherence Answer: D Diff: 2 Page Ref: 230 Skill: Concept Objective: 8-2 26) A stripped-down model without any extras is the starting point; a company can create a higher-level model by adding A) co-branding B) features C) product quality D) service variability E) markets Answer: B Diff: 2 Page Ref: 230 Skill: Concept Objective: 8-2 27) In assessing which new features to add to a product, a company must weigh each feature's to customers versus its to the company A) cost; line extension B) cost; service C) value; cost D) service; line extension E) equity; cost Answer: C Diff: 3 Page Ref: 230 Skill: Concept Objective: 8-2 57 Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 28) A sensational may grab attention and produce pleasing aesthetics, but it does not necessarily improve a product's performance A) design B) style C) experience D) service-profit chain E) augmented product Answer: B Diff: 2 Page Ref: 230 AACSB: Communication Skill: Concept Objective: 8-2 29) contributes to a product's usefulness as well as to its looks A) Style B) Design C) Package D) Brand E) Functionality Answer: B Diff: 2 Page Ref: 230 Skill: Concept Objective: 8-2 30) A(n) is a name, term, sign, symbol, design, or a combination of these, that identifies the maker or seller of a product or service A) service B) brand C) co-branding D) internal marketing E) external marketing Answer: B Diff: 1 Page Ref: 231 AACSB: Communication Skill: Concept Objective: 8-2 58 Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 89) Which of the following is(are) examples of product line depth? A) hamburger and cheeseburger B) hamburger and fries C) Coke and Diet Coke D) A and C E) all of the above Answer: D Diff: 3 Page Ref: 235 AACSB: Reflective Thinking Skill: Application Objective: 8-2 90) Chicken of the Sea brand tuna sells more than the same size Kroger brand tuna, even though the Kroger tuna costs $0.15 less per can Chicken of the Sea has brand A) extension B) equity C) specialty D) service E) valuation Answer: B Diff: 2 Page Ref: 236 AACSB: Reflective Thinking Skill: Application Objective: 8-3 91) A manager of a Holiday Inn said, "We have power and value in the market and people are willing to pay for it." This manager is referring to A) social marketing B) specialty products C) brand equity D) line filling E) product length Answer: C Diff: 2 Page Ref: 236 AACSB: Reflective Thinking Skill: Application Objective: 8-3 78 Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 92) Costco's Kirkland products are an example of a(n) A) organizational brand B) support brand C) private brand D) sponsorship brand E) manufacturer's brand Answer: C Diff: 2 Page Ref: 240 AACSB: Reflective Thinking Skill: Application Objective: 8-3 93) An apparel marketer is planning to launch an existing brand name into a new product category Which brand development strategy is being implemented? A) line extension B) brand extension C) multibranding D) new brands E) rebranding Answer: B Diff: 2 Page Ref: 243 AACSB: Reflective Thinking Skill: Application Objective: 8-3 94) Each new iPod product introduction advances the causes of democratizing technology and approachable innovation iPod, an expert at fostering customer community, has been ranked one of the Breakaway Brands by the brand consultancy Landor Associates iPod is positioned on A) attributes B) benefits C) variation D) selection E) beliefs and values Answer: E Diff: 2 Page Ref: 239 AACSB: Reflective Thinking Skill: Application Objective: 8-3 79 Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 95) Manor Plaza Barber's customers have noticed that the quality of a haircut depends on who provides it as well as when, where, and how it is provided What have the customers noticed? A) service intangibility B) service inseparability C) service variability D) service perishability E) service distinction Answer: C Diff: 2 Page Ref: 245 AACSB: Reflective Thinking Skill: Application Objective: 8-4 96) The impossibility of a barber storing haircuts for later sale is an example of which of the following? A) service intangibility B) service inseparability C) service variability D) service perishability E) low-context services Answer: D Diff: 2 Page Ref: 246 AACSB: Reflective Thinking Skill: Application Objective: 8-4 97) Gina's Nail Salon is serious about pleasing its customers Employees are trained to immediately and pleasantly respond to any customer complaints, and they are empowered to offer discounts and free add-ons to customers who believe they have received anything less than the best service Gina's Nail Salon focuses on A) differentiating its offer B) good service recovery C) internal marketing D) image marketing E) productivity Answer: B Diff: 1 Page Ref: 249 AACSB: Reflective Thinking Skill: Application Objective: 8-4 80 Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall Refer to the scenario below to answer the following questions Herb Marks built his enterprise on the faithful patronage of four specialty shops and a large contract from Elmore Distributors But after two years, the maker of novelty pens and pencils had to rethink his strategy when his two-year contract with Elmore ended Herb built a company reputation on the manufacture and distribution of a variety of wooden writing utensils with customized engravings Specialty shops loved to display the products in their fancy, lighted showcases, but such specialty shops alone were not profitable Herb Marks established a brand name, known merely as Marks, and decided to expand on it Herb extended his writing utensil lines to include quills, felt-tip pens, and multiplecartridge pens that write in different colors He even added a line of various grades of personalized stationery and business cards Perhaps Herb's biggest added touch, however, was the addition of two salespeople who would work to explain the diverse array of products offered by Marks, as well as nurture existing accounts "We make an excellent product," Herb Marks stated, "and we honor a good guarantee on everything we sell But let's face itwe face hundreds of competitors! We need Marks representatives out there to help prospects understand what they should demand in something as simple as a writing tool." The Marks brand was fast-becoming synonymous with top-notch customer service Part of the purchase package brought personal visits from the Marks representative, before the purchase and long after 98) An easier, more comfortable, more stylish transfer of thought onto paper is the of Herb's offerings A) tangible good B) core customer value C) actual product D) augmented product E) pure service Answer: B Diff: 2 Page Ref: 225 AACSB: Reflective Thinking Skill: Application Objective: 8-1 99) What type of consumer products does Marks manufacture? A) industrial B) convenience C) specialty D) shopping E) unsought Answer: C Diff: 2 Page Ref: 226 AACSB: Reflective Thinking Skill: Application Objective: 8-1 81 Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 100) The new felt-tip pens, multiple-cartridge pens, and quills are all examples of A) product line filling B) multibranding C) megabranding D) product line inconsistencies E) licensed brands Answer: A Diff: 1 Page Ref: 234 AACSB: Reflective Thinking Skill: Application Objective: 8-2 101) A service is anything that can be offered to a market for attention, acquisition, use, or consumption and that might satisfy a want or need Answer: FALSE Diff: 1 Page Ref: 224 Skill: Concept Objective: 8-1 102) Sony offers consumers more than just camcorders; it provides consumers with a complete solution to their picture-taking problems This offering is called an augmented product Answer: TRUE Diff: 3 Page Ref: 225 AACSB: Reflective Thinking Skill: Application Objective: 8-1 103) Unsought products are products that the customer usually buys frequently, immediately, and with a minimum of comparison and buying effort Answer: FALSE Diff: 1 Page Ref: 226 Skill: Concept Objective: 8-1 104) Shopping products are less frequently purchased consumer products and services that customers compare carefully on suitability, quality, price, and style Answer: TRUE Diff: 2 Page Ref: 226 Skill: Concept Objective: 8-1 105) Style is a larger concept than design Design describes the appearance of a product Answer: FALSE Diff: 3 Page Ref: 230 Skill: Concept Objective: 8-2 82 Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 106) Branding can add consumer value to a product Answer: TRUE Diff: 2 Page Ref: 231 AACSB: Communication Skill: Concept Objective: 8-2 107) Because so many purchase decisions are made in stores, a product's packaging may be a seller's last and best chance to influence consumers Answer: TRUE Diff: 2 Page Ref: 232 AACSB: Communication Skill: Concept Objective: 8-2 108) Product support services identify the product or brand, describe several things about the product, and promote the product through attractive graphics Answer: FALSE Diff: 2 Page Ref: 233 AACSB: Communication Skill: Concept Objective: 8-2 109) Quaker produces a variety of cereals This variety is called its product line Answer: TRUE Diff: 2 Page Ref: 234 AACSB: Reflective Thinking Skill: Application Objective: 8-2 110) Cannibalization and customer confusion about product differentiation are two potential results if line filling is overdone Answer: TRUE Diff: 3 Page Ref: 234 Skill: Concept Objective: 8-2 111) A company can stretch its product either upward or downward, but not both directions Answer: FALSE Diff: 1 Page Ref: 234 Skill: Concept Objective: 8-2 83 Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 112) A company might stretch its product line upward to add prestige to its current products Answer: TRUE Diff: 2 Page Ref: 234 Skill: Concept Objective: 8-2 113) A company's product mix has four important dimensions: width, length, depth, and consistency Answer: TRUE Diff: 1 Page Ref: 235 Skill: Concept Objective: 8-2 114) Dove marketers can go beyond the brand's cleansing cream properties and talk about the resulting benefit of softer skin This is known as product attributes in brand positioning Answer: FALSE Diff: 3 Page Ref: 238 AACSB: Reflective Thinking Skill: Application Objective: 8-3 115) Attributes are the least desirable level for brand positioning because competitors can easily copy attributes and customers are more interested in what attributes will do for them than in the attributes themselves Answer: TRUE Diff: 2 Page Ref: 238 Skill: Concept Objective: 8-3 116) Retailers and wholesalers who have created their own brandssuch as Wal-Mart's Sam's Choice beverages and food productsare participating in co-branding Answer: FALSE Diff: 3 Page Ref: 241 AACSB: Reflective Thinking Skill: Application Objective: 8-3 117) When a company introduces a new brand name in the same product category, it is called line extension Answer: FALSE Diff: 2 Page Ref: 242 Skill: Concept Objective: 8-3 84 Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 118) Customers come to know a brand through a wide range of contacts and touch points, including word of mouth, personal interactions with company people, telephone interactions, and company Web pages Answer: TRUE Diff: 1 Page Ref: 244 AACSB: Communication Skill: Concept Objective: 8-3 119) An example of service variability is that within a given Marriott hotel, one registration-desk employee may be cheerful and efficient, whereas another may be unpleasant and slow Answer: TRUE Diff: 3 Page Ref: 245 AACSB: Reflective Thinking Skill: Application Objective: 8-4 120) Service inseparability means that the quality of services depends on who provides them, as well as when, where, and how they are provided Answer: FALSE Diff: 2 Page Ref: 245 Skill: Concept Objective: 8-4 121) In a service business, the customer and front-line service employee interact to create the service Answer: TRUE Diff: 2 Page Ref: 246 Skill: Concept Objective: 8-4 122) The service-profit chain is the set of all product lines and items that a particular seller offers for sale Answer: FALSE Diff: 2 Page Ref: 246 Skill: Concept Objective: 8-4 123) One aspect of managing service differentiation is the company's service delivery Answer: TRUE Diff: 2 Page Ref: 248 Skill: Concept Objective: 8-4 85 Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 124) Customer retention is perhaps the best measure of qualitya service firm's ability to hang on to its customers depends on how consistently it delivers value to them Answer: TRUE Diff: 2 Page Ref: 248 Skill: Concept Objective: 8-4 125) Good service recovery can turn angry customers into loyal customers and can even win more customer purchasing and loyalty than if no problem had occurred in the first place Answer: FALSE Diff: 2 Page Ref: 249 Skill: Concept Objective: 8-4 126) Products and services fall into two broad classes based on the types of consumers that use them Name these two broad classes and describe how they are different from each other Answer: The two broad classes are consumer products and industrial products Consumer products and servicesthose bought by final consumersare usually classified according to consumer shopping habits Consumer products include convenience products, shopping products, specialty products, and unsought products Industrial products are distinguished from consumer products by the purpose for which they were purchased Industrial products are those that are purchased for further processing or for use in conducting a business These products include the three broad categories of materials and parts, capital items, and supplies and services Diff: 2 Page Ref: 226-227 AACSB: Analytic Skills Skill: Application Objective: 8-1 127) Name and describe three decisions that companies make regarding their individual products and services Answer: Decisions to be made in the development and marketing of individual products and services include 1) product attributes, 2) branding, 3) packaging, 4) labeling, and 5) product support services Product attribute decisions involve product quality, features, and style and design Branding decisions include selecting a brand name and developing a brand strategy Packaging involves designing and producing a product's container; packaging provides many key benefits, such as protection, economy, convenience, and promotion Labeling identifies the product and may describe and promote the product and brand Companies must also make a decision about product support services, which are usually a minor or major part of a market offering Diff: 1 Page Ref: 229 AACSB: Communication Skill: Application Objective: 8-2 86 Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 128) Describe the role of packaging Answer: Packaging involves designing and producing the container or wrapper for a product Packaging contains and protects the product, but it also is used to attract customer attention, to describe the product, and to make the sale Innovative packaging may give a company an edge over competitors Diff: 1 Page Ref: 231 AACSB: Communication Skill: Application Objective: 8-2 129) Explain the history of legal concerns about packaging and labels Answer: The Federal Trade Commission Act of 1914 held that false, misleading, or deceptive labels or packages constitute unfair competition Labels can mislead consumers, fail to describe important ingredients, or fail to include needed safety warnings To address this problem, several federal and state laws regulate labeling The Fair Packaging and Labeling Act of 1966, for example, set mandatory labeling requirements, encouraged voluntary industry packaging standards, and allowed federal agencies to set packaging regulations in specific industries The Nutritional Labeling and Education Act of 1990 requires sellers to provide detailed nutritional information on food products; the Food and Drug Administration regulates the use of healthrelated terms such as low-fat, light, and high-fiber Diff: 3 Page Ref: 233 AACSB: Ethical Reasoning Skill: Application Objective: 8-2 130) Compare product mix width, length, consistency, and depth Answer: Product mix width refers to the number of different product lines the company carries; product length refers to the total number of products carried in a company's product lines Consistency refers to how closely related the various product lines are in end use Product depth refers to the number of versions offered of each product in the line Diff: 2 Page Ref: 235 AACSB: Analytic Skills Skill: Application Objective: 8-2 131) A manufacturer has four brand sponsorship options Describe what they are Answer: A manufacturer can launch its own brand (manufacturer's brand or national brand) It can sell to resellers who give the product a private brand (or store brand) It can market licensed brands, using names or symbols created by other manufacturers, names of celebrities, or characters from popular movies or television Finally, a manufacturer can join forces with another company to co-brand a product Diff: 2 Page Ref: 240 AACSB: Communication Skill: Application Objective: 8-3 87 Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 132) A company has four choices when it comes to developing brands Describe what they are Answer: The company can introduce line extensions, brand extensions, multibrands, or entirely new brands A line extension involves extending a current brand name to new forms, colors, sizes, flavors, etc in one of the company's existing product categories In contrast, a brand extension extends a current brand name to a new or modified product in a new product category Multibranding involves introducing several brands within the same category Finally a company may decide that a new brand name is needed, particularly if the power of an existing brand name is declining or the company is entering a new product category Diff: 2 Page Ref: 242 AACSB: Communication Skill: Application Objective: 8-3 133) Services are characterized by four key characteristics Name and describe these four characteristics Answer: The four service characteristics are intangibility, inseparability, variability, and perishability Services are intangible: they cannot be seen, tasted, felt, heard, or smelled before they are bought Services are inseparable: they are produced and consumed at the same time and cannot be separated from their providers, whether the providers are people or machines Services are variable: their quality may vary greatly, depending on who provides them and when, where, and how they are provided Services are perishable: they cannot be stored for later sale or use Diff: 2 Page Ref: 245 AACSB: Analytic Skills Skill: Application Objective: 8-4 134) Good service companies focus attention on both customers and employees Describe what the service-profit chain and internal marketing are, and how they differ from each other Answer: The service-profit chain links service firm profits with employee and customer satisfaction The links in the service-profit chain are as follows: internal service quality leads to satisfied and productive employees, who create greater service value, which leads to satisfied and loyal customers, who create healthy service profits and growth Internal marketing by a service firm refers to training and effectively motivating its customer-contact employees and all the supporting service people to work as a team to provide customer satisfaction The serviceprofit chain deals with employees and customers Internal marketing deals with training employees Diff: 3 Page Ref: 246 AACSB: Communication Skill: Application Objective: 8-4 88 Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 135) How can service providers use a differentiated offer, delivery, and image to avoid competing solely on price? Answer: A service offer can include innovative features that differentiate the company's offers from competitors Service delivery can be differentiated by hiring and training more reliable customer-contact people, developing a superior physical environment in which the service is delivered, and designing a superior delivery process Services can also be differentiated through symbols and branding, creating an image that sets a company's services apart from competitors' Diff: 2 Page Ref: 248 AACSB: Analytic Skills Skill: Application Objective: 8-4 136) Give an example of the most basic level of product, the core benefit Answer: Examples are numerous A salon owner, providing similar services of a day spa, may focus on "pampering yourself in total relaxation." Diff: 2 Page Ref: 225 AACSB: Reflective Thinking Skill: Application Objective: 8-1 137) Give examples of the second level of product, the actual product Answer: A salon owner may market hair- and nail-care products and services, full- and partialbody massages, workout equipment and training, and social activities, and so forth Diff: 1 Page Ref: 225 AACSB: Analytic Skills Skill: Application Objective: 8-1 138) Give an example of an augmented product Answer: Examples will vary An augmented product may include the customer of a salon having the option of having most of the services performed in the privacy and solitude of his or her home Diff: 2 Page Ref: 225 AACSB: Reflective Thinking Skill: Application Objective: 8-1 139) Give three examples of convenience products Answer: Examples may include soft drinks, milk, and candy Diff: 1 Page Ref: 226 AACSB: Reflective Thinking Skill: Application Objective: 8-1 89 Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 140) Give three examples of shopping products Answer: Examples may include washing machines, lawn mowers, and furniture Diff: 1 Page Ref: 226 AACSB: Reflective Thinking Skill: Application Objective: 8-1 141) Give three examples of specialty products Answer: Examples may include a Rolex watch, a Jaguar sports car, or an around-the-world cruise Diff: 1 Page Ref: 226 AACSB: Reflective Thinking Skill: Application Objective: 8-1 142) What do industrial supplies and consumer convenience products have in common? How do they differ? Answer: Industrial supplies are purchased for further use in conducting a business, while convenience products are purchased by final consumers for personal consumption; both types of products are usually purchased with a minimum of effort or comparison Diff: 3 Page Ref: 227 AACSB: Analytic Skills Skill: Application Objective: 8-1 143) How does a brand name add value to a product? Answer: Quality and consistency can be identified through a brand; experience with or knowledge of another's experience with a brand helps a buyer know what features, benefits, and quality to expect from a product Diff: 2 Page Ref: 231 AACSB: Analytic Skills Skill: Application Objective: 8-2 144) How might a flower shop engage in line stretching? Answer: A flower shop may offer single-stem, fresh-cut flowers, sold individually, small arrangements, bouquets, or large ceremonial sprays; with line stretching, the flower shop will offer a wide array of products geared toward all types of flower buyers Diff: 3 Page Ref: 234 AACSB: Analytic Skills Skill: Application Objective: 8-2 90 Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 145) Why might a company pursue a strategy of less product line consistency? Answer: A company might want to increase its business by building a reputation in several product fields Diff: 2 Page Ref: 235 AACSB: Analytic Skills Skill: Application Objective: 8-2 146) Consumers form relationships with products via brands What might happen that allows a consumer to move from merely recognizing a brand to preferring a brand? Answer: A consumer has likely tried the brand at least once in order to prefer it over others; or, perhaps the consumer prefers a brand merely because he or she has been exposed to a catchy ad or promotional gimmick Diff: 2 Page Ref: 236 AACSB: Analytic Skills Skill: Application Objective: 8-3 147) Why is it important for a brand promise to be simple and honest? Answer: Consumers who purchase the product and believe it does not live up to the promise will develop a negative image of the brand; they will be less likely to become loyal customers Diff: 2 Page Ref: 239 AACSB: Analytic Skills Skill: Application Objective: 8-3 148) Consider such brand names as A1 Steak Sauce, 409, A & D Ointment, A & W Root Beer, and Super 8 Why might such names with alphanumeric characters aid in brand name selection? Answer: Such brands are easy to pronounce, easy to recognize, and easy to remember Diff: 2 Page Ref: 239 AACSB: Communication Skill: Application Objective: 8-3 149) How might measuring service quality be more difficult than measuring product quality? Answer: Products are tangible; therefore, measuring quality across several dimensionssuch as durability, functionality, and so onmay be easier or performed more consistently than when measuring service quality Diff: 3 Page Ref: 245 AACSB: Analytic Skills Skill: Application Objective: 8-4 91 Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 150) As a service provider, why might you perceive the buyer-seller relationship in the service encounter to be especially critical? Answer: Customers' perceptions are established during the service encounter At this time, based on these perceptions, customers can become loyal, long-term buyers It is critical that service sellers establish sound relationships from the beginning Diff: 2 Page Ref: 247 AACSB: Analytic Skills Skill: Application Objective: 8-4 92 Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall